If a Regression Analysis Shows an R Factor of 0

question 245

Multiple Choice

If a regression analysis shows an R factor of 0.15, it is safe to assume

• A)a strong positive relationship between cost and volume.
• B)a strong negative relationship between cost and volume.
• C)a perfect positive relationship between cost and volume.
• D)a very weak relationship between cost and volume.

Understand the basic concept and components of the Capital Asset Pricing Model (CAPM).

Identify and explain the assumptions underlying the CAPM and their implications.

Comprehend the concept of systematic risk and its measurement through beta.

Describe the characteristics of the market portfolio and its significance in CAPM.